Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), has blocked the A$4.9 billion ($3.2 billion) takeover of Suncorp by ANZ, the country’s largest banking merger since the 2008 financial crisis. The ACCC ruled that the deal would “further entrench an oligopoly” in the banking sector, reducing competition and strengthening the position of the four major banks.
The merger would have also lessened competition in the business and agriculture lending sectors in the state of Queensland, where Suncorp is based. Both Suncorp and ANZ plan to appeal the decision to the Australian Competition Tribunal. The move is seen as halting a trend of consolidation in the Australian banking sector and preserving competition among second-tier banks.
